Proximar secures extra NOK 140m to cover rising costs of land-based project

Proximar Seafood, which is building a landbased salmon farming facility in Japan, conducted a private placement of shares to cover higher operational and financing costs, and increased capital expenditures.
Joaquim Nielsen, CEO and co-founder of Proximar Seafood.
Joaquim Nielsen, CEO and co-founder of Proximar Seafood. Photo: Proximar Seafood.

Proximar Seafood has raised an extra NOK 140 million through a private placement, to cover additional costs associated with the construction of its land-based salmon farm in Japan.

In an announcement to the Oslo stock market, the company said its board of directors had "conditionally allocated 70 million new shares in the Private Placement each at a subscription price of NOK 2.00 per Offer Share," in an effort to raise a total of NOK 140 million (approximately USD 13.5m / EUR 12.3m) .

The company had previously said in its Q3 report that it would be seeking an additional NOK 165 million (approximately USD 15.9m / EUR 14.5m) over the coming period.

Additional funds will be used to cover rising operational, financing costs and increased CAPEX, Proximar said

Proximar has suffered increasing costs as it continues constructing its land-based RAS salmon farm near Mount Fuji in Japan.

"The net proceeds to the Company from the Private Placement will be used to cover higher expected operational costs, financing costs and increased CAPEX as further detailed in relation to the Q3 reporting by the Company on 10 November 2023 and in a stock exchange announcement on 7 December 2023," the company said in a statement.

The issue is subject to approval at an extraordinary general meeting which will be held in early January.

The group appointed ABG Sundal Collier and Pareto Securities as financial advisors for the process.

About Proximar Seafood

Proximar Seafood is a Norwegian land-based salmon farming company with its first production facility and production at the foot of Mount Fuji in Japan. The company has inserted its fifth batch of eggs since October 2022. Through land-based fish farming, using high-quality ground water secured close to Mount Fuji, the company will produce fresh Atlantic Salmon, harvested the same day. Proximar's location, near one of the world's most important fish markets, implies significant advantages, both in terms of reduced cost and carbon footprint.

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